Lanco Infra, Adani Power gain up to 5% on power plant deal
Shares of Lanco Infratech and Adani Power gained as much as 5% on Thursday following a mega deal for a power plant between the two companies.business Updated: Aug 14, 2014 12:57 IST
Shares of Lanco Infratech and Adani Power gained as much as 5% on Thursday following a mega deal for a power plant between the two companies.
Adani Power will acquire Lanco Infratech's 1,200 mega watt (MW) Udupi thermal plant in a deal worth over Rs 6,000 crore.
Lanco Infratech's scrip rose by 4.92% to Rs 8.95% on the Bombay Stock Exchange (BSE).
Similarly, shares of Adani Power gained 3.65% to Rs 53.95.
Adani Power would acquire Lanco Infratech's 1,200 MW imported coal-fired Udupi thermal power plant in Karnataka.
Making the announcement, Lanco Infratech said the deal is "is valued at more than Rs 6,000 crore". It includes Rs 4,000 crore debt component.
"This transaction will support the company in reducing its debt and will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi plant's long-time debt of around Rs 4,000 crore," it had said in a statement on Wednesday.